Friday Five – 14 October – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.

1. Which of the following can give an insight into a firm’s attention to ethical issues?
   1. The number of new starters
   2. Data on policy lapses
   3. The number of days’ holiday it allows
   4. Data on business figures

2. Susan is considering purchasing unit trusts and OEICs. She should be aware that: Tick all that apply
   1. Both products are exempt from Capital Gains Tax in the hands of the investor
   2. She will be buying units in the unit trust and shares in the OEIC
   3. Both unit trusts and OEICs are classed as collective investments
   4. Dividends from both products are paid gross

3. The minimum employer contribution for auto-enrolment purposes once fully phased in is:
   1. 3% of total earnings.
   2. 3% of qualifying earnings.
   3. 8% of qualifying earnings.
   4. 8% of total earnings.

4. Within trust law, trustees must consider the standard investment criteria – what does this comprise of?
   1. The need for diversification and suitability of investment
   2. Due diligence and productivity
   3. The power to appoint investment managers
   4. Duty to invest the trust fund and keep accurate accounts

5. Miranda is planning on buying a holiday home. She should be aware that any losses she incurs:
   1. can be offset against other property income
   2. cannot be offset against other income
   3. can be offset against any foreign property income
   4. can be offset against any dividend income

Answers

1. B – See R01 Study Text, Chp 10, Section C1
   Grab our taster mock exam paper for CII R01. Click here to download.

2. BCD – See R03 Study Text, Chp 10, Section C
   Grab our taster mock exam paper for CII R03. Click here to download.

3. B – See R04 Study Text, Chp 3, Section C4A
   Grab our taster mock exam paper for CII R04. Click here to download.

4. A – See J10 Study Text, Chp 4, Section E2E
   Grab our taster mock exam paper for CII J10. Click here to download.

5. B – See R07 Study Text, Chp 6, Section B2A
   Grab our taster mock exam paper for CII R07. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)